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Evil Lurks in the Shadlows of that "Strong" Housing Number

The thinly traded equity markets took off today on the strength of some very good November numbers out of the Census Department on the U.S. home building sector (also, among a few other things, an absence of bad news from Europe – but that’s another matter).

The numbers were quite good on both the starts and permits side, showing annualized, seasonally adjusted volume of 685,000 and 681,000, respectively. Actual, unadjusted, starts in November were 51,800 for the month. 50,400 permits were drawn in November. This is up, in both cases, by about 10,000 units (20%) from November 2010.

A third of starts and permits were multifamily rental units. But virtually ALL of the increase over November 2010 was in multifamily construction, on an unadjusted basis. November’s annualized single family starts number of 447,000 was actually lower than the starts in November of 2010 (454,000).

Read more: http://www.businessi…2#ixzz1hC6mAgKG

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